All About Filling ESI Returns and ESI Registration in Rajasthan

Welcome to the world of business and entrepreneurship. If you are looking for ESI (Employee’s State Insurance) registration in Rajasthan, you are on the right track to ensure the welfare and protection of your employees. ESI registration is an important step that not only demonstrates the company’s commitment to employee welfare but also ensures compliance with the legal framework governing employment in India. In this article, we are going to read about the procedure for ESI registration in Rajasthan.

Overview

The Employee’s State Insurance Scheme is one of the common social security schemes implemented by the central government after India’s independence. All eligible companies must be registered under the ESI Act of 1948. Failure to register with the ESI scheme may expose these companies to legal action. Consequently, companies must ensure compliance with the provisions of the ESI Act to maintain their legal standing.

What is ESI registration?

The Employee’s State Insurance Act of 1948 is a law that provides benefits to employees in the event of sickness, maternity, and work-related injuries. Subsequently, in order for employers to be able to provide these benefits to their employees, they had to provide regulations to certify companies that provide these benefits to their employees.

An ESI registration certificate is required for companies with more than 10 (20 in some states) employees and a maximum payroll of INR 100 crore. 21000/- per month, minimum wage x 6 x 6.5% The scheme requires employers to contribute 3.25% of the total monthly salary paid to employees, but employers are required to contribute only 0.75% of the monthly salary. The only exception for contributory employees is for employees whose salary is less than Rs 176 per day.

Applicability of ESI registration

The ESI scheme applies to all factories and other establishments as defined by law employing 10 or more persons, subject to the scheme to the extent that the monthly salary of the beneficiary does not exceed Rs. 21,000. All employees employed by an employer are counted, regardless of salary, regardless of whether the employer employs 10 or more employees.

Benefits of ESI registration

The benefits of obtaining ESIC registration are:

• Benefits in case of illness (in the form of salary): 70% in case of certified illness can be continued up to 91 days in a year.
• Medical benefits for employees and their families
• Paid maternity leave allowance for pregnant women
• If an employee dies while on duty, 90% of the salary may be paid to immediate dependents each month following the employee’s death.
• If the employee has a disability, as above
• Funeral expenses
• Medical expenses in old age

Documents required for ESI registration

The documents required for ESIC registration are:

• The registration certificate is obtained based on one of the following measures:

1. Factory Act
2. Shops and Establishment Act

• Certificate of registration of the company; partnership deed of the partnership firm
• Memorandum of Association (MOA) and Articles of Association (AOA) of the company
• List of all employees working in the office
• PAN cards for the institution and all employees working in the organisation
• Employee salary statement
• Cancelled checks from our bank account
• List of company directors
• The list of our shareholders is also included.
• General ledger with details of staff attendance

Procedure of ESI registration in Rajasthan

The ESI registration process in Rajasthan includes the following steps:

• Step 1: Login to ESIC portal Employers must register as an employer under the ESI Act by clicking on esic.in and selecting “Click here to login” on the home page. Enter the required information to register.
• Step 2: Confirmation email To enrol in the ESIC scheme, the employer must receive a confirmation email containing username and password information for both the employee and the employer.
• Step 3: Employer registration form-1 Log in to the ESIC portal using the username and password provided. Click on the new employer registration option. The employer must select the type of unit from the list and click on the submit button. In the next step, the employer has to fill the details in the employer registration form and click on the “submit” button.
• Step 4: Payment of registration fee After sending Form-1, the employer must enter the payment amount and select the payment method on the “Prepayment Contribution Payment” page. Employers must pay the premium six months in advance.
• Step 5: Registration letter After paying the 6-month advance, the ESIC department will send a registration letter (C-11) containing your 17-digit registration number to your employer. This registration letter (C-11) is your employer’s legally binding registration document.

In addition, one must always notify ESIC of any changes in the company or changes in staff.

Non-compliance and penalties

Amounts that are deducted from the employee’s salary as employee quota are considered a donation to the employer. Therefore, it is the responsibility of the employer to pay the insurance premium to ESI.

• In case of delay or non-payment of the employee’s insurance premium, the amount deducted from the employee’s income is a “criminal violation” and is punishable according to articles 406 and 409 of the Indian Penal Code, which is also a crime (u/s 85(b)–g) of the ESI Act.
• Non-payment, falsification of payment, or delay in payment under the ESI Act may result in imprisonment exceeding two years and a fine exceeding Rs. 5000.
• Consequences of payment delay: In the event of non-payment of insurance premiums by the stipulated deadline and due to the delay or non-payment of daily insurance premiums, employers are obliged to pay simple interest at the rate of 12% per year.

Filling of ESI returns

Companies are required to submit ESI returns every six months. However, all eligible legal entities with more than 10 employees must register with the ESI scheme before starting the ESI return filing process. Businesses must use a unique 17-digit ID to file their semi-annual returns. After registration, employees will receive an ESI card with family and employer details. Businesses can submit their ESI returns online through the official government portal.

What documents are required to file ESI returns?

Companies must regularly maintain the following documents for filing ESI returns:

Procedure when one wants to file ESI return in Rajasthan

Following are the steps to be followed for filling  ESI return:

• Step 1: User ID and Password Every employer is given a user ID, password, and a 17-digit code after registering in ESI.

• Step 2: Login to the Employee State Insurance Corporation. Login into the ESIC website. One has to enter his/her login information and press “Login.”
• Step 3: Enter the correct information. Before clicking File Monthly Return on the right side, ensure that the employee details are correct. A list of options to edit employee details will be available in the portal. Correct the information if necessary.
• Step 4: Bank records To send monthly ESI contributions, one must enter bank details and click “Submit.
• Step 5: Generation of the Challans After completing the donation payment, go to the ‘Action List’ page and press ‘Generate Challans.” This challans should be kept for inspection.
• Step 6: Chartered account certificate Select the check box to accept the statement and click on Self-Certify in the Monthly Contributions section. If you have more than 40 employees, you must upload a verified account certificate.
• Step 7: The employer completes the ESI form. Click “Submit”.

In case of any query regarding the ESI registration and ESI return filling in Rajasthan, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at admin@legalwindow.in.

Conclusion

The ESI Act, 1948, lays down regulations and guidelines for employers to provide various benefits to their employees in case of illness or death at work. Also, ESI-registered companies in India are required to provide maternity benefits in the form of paid leave to pregnant women in their companies. In addition, all the employees of such companies get various benefits mentioned in the ESI Act after registering for the ESI scheme.